Elpida to Join the Legal Battle Against Hynix

by Anton Shilov
04/21/2003 | 05:27 AM

Elpida Memory is considering joining Infineon, Micron and Taiwanese DRAM makers against the struggling Hynix Semiconductor, according to various reports. In case the company decides to ask Japanese government to propose higher tariffs on Hynix’s import in Japan and the government will approve this move, the Korean DRAM maker may practically loose this market.

Just like European, American and Taiwanese memory manufacturers, Elpida accuses Hynix in receiving illegal subsidies from the government.

Elpida has a number of reasons to act against troubled Korean DRAM company. Firstly, the Japanese memory maker is interested in higher prices for memory and in case Hynix will not be able to sell its production, the prices will rise. Secondly, Elpida may be concerned that Hynix may try to sell its memory in Japan, competing with local DRAM producers, after the US, European and Taiwanese markets will be practically closed for the Korean company.

Although all memory makers now collaborate against Hynix Semiconductor, the results of this action are not so clear (see Friday, 18 of April, 2003 news-story for more comments).